due diligence and sanctions questionnaire - clearstream · to be filled in by the customer the...

Clearstream Banking S.A

Clearstream Banking AG

7162/07.2017

Due Diligence and Sanctions Questionnaire Clearstream Banking S.A. (CBL)

Clearstream Banking AG (CBF)

Part 1: To be filled in by the Customer

The questionnaire is required to be answered on a Legal Entity (LE) level per country. This means the

Customer will answer the questionnaire either at head office level covering all branches in the same

country as the head office or at the level of each foreign branch that is active in the s ecurities

business. This questionnaire should not cover more than one LE and should therefore also be

completed by each subsidiary and affiliate that is active in securities business.

I. Company information

1. Registered company name: _______________________________________________________________________

Address: ___________________________________________________________________________________________

City: _______________________________________________________________________________________________

Post code: _________ Country: _______________________________________________________________________

2. Legal form: ______________________________________________________________________________________

Regulatory authority: _______________________________________________________________________________

(if applicable)

3. Please provide us with the main business lines of your company with brief details.

____________________________________________________________________________________________________

4. Does your institution maintain a physical presence in the

licensing country (operational status)?

󠄀 Yes

󠄀 No

5. Please indicate the name and country in which your ultimate parent has its headquarters:

Name: _____________________________________________________________________________________________

Country: __________________________________________ Or 󠄀 󠄀 󠄀 󠄀 󠄀 󠄀 󠄀󠄀 󠄀 N/A

If the ultimate parent company is regulated, please indicate the name of the supervisory authority:

_____________________________________________________________________________________________________

Name of the regulator: ______________________________________________________________________________



Due Diligence and Sanctions Questionnaire 2

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6. Is this questionnaire applicable to your branches and/or

subsidiaries?

󠄀 Yes

󠄀 No

󠄀 N/A

II. Ownership and management information

1. Listed company, its subsidiary or controlled company

󠄀 The company is a listed company, listed on a recognised stock exchange.

󠄀 The company is a subsidiary of a listed company.

󠄀 The company is controlled by a listed company.

If any of the above options are selected, please provide details of the listed company.

Name of the listed company: ________________________________________________________________________

Stock exchange on which it is listed: _________________________________________________________________

2. Details of the shareholder structure

󠄀 Shareholder(s) exercise control alone or together with other shareholders at least 10% in the capital

or at least 10% of the voting rights in the company, including through any content, understanding,

relationship or intermediary.

If the above option is selected, please provide a list of the major shareholders holding more than 10% of

shares in your institution.

____________________________________________________________________________________________________

3. Details of beneficial owner(s) - individual(s)

󠄀 There are no natural person(s) who exercise control or ultimately have controlling ownership.

󠄀 The following person(s) exercise(s) control or ultimately has/have a controlling ownership interest, i.e.

having ownership/entitlement of more than 25% of capital/profits/property or controlling through

voting rights, agreement, or similar arrangements.

Please provide details.

____________________________________________________________________________________________________




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Are there any Politically Exposed Persons (PEPs) among 󠄀your 󠄀institution’s 󠄀ownership 󠄀structure?

󠄀 No

󠄀 Yes _______%

If yes, please provide details (role, name, nationality, date of birth):

____________________________________________________________________________________________________

4. Have there been any significant changes in the ownership structure over the last year?

󠄀 No

󠄀 Yes

If yes, please provide details below:

____________________________________________________________________________________________________

5. Please provide the names of the institution's Board of Directors and Management Board (in the case of

a two tier structure), and time served in this position:

____________________________________________________________________________________________________




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Are there any PEPs in the Executive Management?

󠄀 No

󠄀 Yes

If yes, please provide details (role, name, nationality, date of birth):

____________________________________________________________________________________________________

6. Is the institution a U.S. Person or SEC Foreign Registered Broker ( in the sense of the U.S. Exchange

Act 1934):

󠄀 Yes

󠄀 No

III. General AML Policies, Practices and Procedures

1. Is your country a member of the Financial Action Task Force (FATF)?

󠄀 Yes

󠄀 No

If no, please provide the name of comparable organisation to which your country belongs (for example, AGP):

____________________________________________________________________________________________________

The following questions (2-13) can be waived if the Wolfsberg Questionnaire is provided.

2. Do you have a legal and regulatory compliance program that includes a designated

officer that is responsible for coordinating and overseeing the AML framework?

󠄀 Yes

󠄀 No

3.Is the financial crime compliance program approved by your institution’s board or a

senior committee?

󠄀 Yes

󠄀 No

4. Has your institution developed written policies documenting the processes that you

have in place to prevent, detect and report suspicious transactions?

󠄀 Yes

󠄀 No

5. In addition to inspections by the government supervisors/regulators, do es your

institution have an internal audit function or other independent third party that

assesses AML and CTF policies and practices on a regular basis?

If yes, please specify the name of the external auditor:

_________________________________________________________________________________

󠄀 Yes

󠄀 No

6. Does your institution have record retention procedures that comply with applicable

law?

󠄀 Yes

󠄀 No




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7. Does your institution have policies designed to reasonably ensure that it only

operates with correspondent banks that possess licenses to operate in their country

of origin?

󠄀 Yes

󠄀 No

8. Does your institution adhere to the Wolfsberg Transparency Principles and the

appropriate usage of the SWIFT MT202/202COV and MT205/205COV message

formats?1

󠄀 Yes

󠄀 No

9. Does your institution provide AML training to relevant employees that includes?

Identification and reporting of transactions that must be reported to

government authorities.

Examples of different 󠄀forms 󠄀of 󠄀money 󠄀laundering 󠄀involving 󠄀the 󠄀FI’s 󠄀products 󠄀

and services.

Internal policies to prevent money laundering.

Compliance with applicable sanctions laws

󠄀 Yes

󠄀 No

10. Does your institution retain records of its training sessions including attendance

records and relevant training materials used?

󠄀 Yes

󠄀 No

11. Does your institution communicate new financial crime compliance related laws

or changes to existing AML related policies or practices to relevant employees?

󠄀 Yes

󠄀 No

12. Does your institution employ agents to carry out any of its AML related functions? 󠄀 Yes

󠄀 No

13. If yes, does your institution provide AML training to relevant agents? 󠄀 Yes

󠄀 No

1 The four payments message standards to be observed are: i) financial institutions (FI) should not omit,

delete, or alter any information in payment messages or orders for the purpose of avoiding detection of

that information by any other FI in the payment process; ii) FIs should not use any particular payment

message for the purpose of avoiding detection of information by any other FI in the payment process; iii)

subject to applicable laws, FIs should cooperate as fully as practicable with other FIs in the payment

process when requesting to provide information about the parties involved; and iv) FIs should strongly

encourage their correspondent banks to observe these principles.

Source: www.wolfsberg-principles.com

www.wolfsberg-principles.com




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IV. Sanctions Certificate

Does your institution have:

- Any offices, transactions, investments, activities or planned activities in sanctioned targets 2or

- Any transactions, investments, activities or planned activities with (or in) any person or entity located

in sanctioned targets or with (or in) any entity owned or controlled by any entity located in

sanctioned targets?

󠄀 Yes

󠄀 No

If yes, please elaborate, including specific types of investments, transactions or activities and % of total

revenues and/or assets that these instruments, transactions or activities represent for your institution in

sanctioned targets:

____________________________________________________________________________________________________

Sanctions certification

1) The customer provides the certifications below as required by the General Terms and Conditions

governing the provision of services and products by CBL/CBF with the express purpose of assuring

CBL/CBF that the customer's actions will not cause the customer, CBL/CBF or CBL/CBF`s agents,

depositories or correspondents to violate financial or internatio nal trade regulations.

2) The customer certifies that, regardless of whether it is subject to the jurisdiction of the EU and any

EU member state, in all dealings with CBL/CBF (3), it will comply with EU regulations regarding

economic sanctions, anti-money laundering, anti-corruption as those regulations exist at the time of

a transaction or service, provided that, for securities denominated in U.S. Dollars or issued or sub-

deposited in the U.S.A., with a U.S. person outside the U.S.A. or having a U.S. person as agent (U.S.-

linked securities) or cash transactions likely to be processed by a U.S. financial institution (U.S. cash

transactions), the customer will comply additionally with U.S. regulations.

3) The customer further certifies that it will not knowingly or with reason to know, use or permit the use

of any CBL/CBF 3 account, directly or indirectly, or enter into or sustain any client relation that would

cause CBL/CBF 3 to violate EU regulations, or in the case of U.S.-linked securities or U.S. cash

transactions, U.S. regulations, regarding economic sanctions, anti -money laundering or anti-

corruption.

2 A sanctions target means any party that is a target of U.S., EU, UK or UN sanctions or to your knowledge,

any other sanctions authority relevant to your institution. Sanctions targets include any party identified on

the OFAC list of SDN, OFAC Foreign Sanctions Evaders List, or OFAC Sectorial Sancti ons Identifications

Lists, and any party identified in, or in annex to, a resolution of the EU or the UN sanctions as a targeted

party. U.S. sanctions targets also include any person or entity that is a citizen or resident of Iran(For

guidance relating to the lifting of certain U.S. sanctions pursuant to the Joint Comprehensive Plan of

Action, please refer to the following link:

https://www.treasury.gov/resourcecenter/sanctions/Programs/Documents/implement_guide_jcpoa.pdf ),

Cuba, Syria, Sudan and North Korea. 3 CBF, except for securities held in collective safe custody.

https://www.treasury.gov/resourcecenter/sanctions/Programs/Documents/implement_guide_jcpoa.pdf




7162/07.2017

Part 2:

To be filled in by Customers holding client assets for the purpose of providing securities settlement,

custody, funds distribution or similar services. Please note that accounts segregated to one legal

owner may pool or commingle the entitlements of many investors or owners when that legal owner is

itself offering omnibus accounts to its clients, "Pooled Accounts"

1. Has your institution adopted policies and procedures,

supported by appropriate compliance controls, to ensure

that it meets your financial crime compliance obligations

and the ISSA Financial Crime Compliance Principles?4

󠄀 Yes

󠄀 No

2. Does your institution subject its custody clients to

appropriate due diligence at onboarding and periodically in

order to assess the level of financial crime risk arising

from the provision of custody and fund distribution

services?

󠄀 Yes

󠄀 No

3. Does your institution accept clients that are themselves

sub-depositing assets on behalf of third party clients?

If so;

Do your AML policies and procedures require that

clients sub-depositing assets on behalf of third

party clients are AML regulated?

Does your due diligence program include an

assessment of the effectiveness of the application

of global AML and CTF standards in the

jurisdictions of your clients (where these are AML

regulated)?

Does your institution make an AML / CTF

assessment of its customers and their

transactions?

Do you permit clients sub-depositing assets on

behalf of third party clients to do so on a

commingled basis (in "pooled" or omnibus"

account(s)

󠄀 Yes

󠄀 No

󠄀 Yes

󠄀 No

󠄀 Yes

󠄀 No

󠄀 Yes

󠄀 No

󠄀 Yes

󠄀 No

4. Does your institution screen customers and transactions

against lists of persons and entities sanctioned by

competent authorities and against countries/regions

subject to comprehensive jurisdiction-based sanctions

administered by government/competent authorities of G7

members countries?

If so, please give details of the authorities:

________________________________________________________

󠄀 Domestic authorities

󠄀 US Treasury (OFAC)

󠄀 EU Council

󠄀 UN

󠄀 Other (please comment)

_________________________________________

4 The question related to ISSA principles is for information purpose only. A negative answer will not trigger

any further requirement.

https://www.issanet.org/e/3/current-wgs/compliance-transparency-value-chain/123-compliance-transparency.html




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5. Where your institution opens accounts with CBL/CBF for

the purpose of segregating assets of a single owner, does

it declare to CBL/CBF the owner of the assets deposited?

󠄀 Yes

󠄀 No

6. Does your institution prohibit the opening of anonymous

or numbered accounts by clients?

󠄀 Yes

󠄀 No

7. Which financial products and services does your

institution offer to its securities custody and funds

distribution clients?

󠄀 Depository / Settlement services

󠄀 Standalone Custody / Securities Services

Division

󠄀 Investment Bank / Brokerage

󠄀 Wealth Management / Private Banking

󠄀 Transaction banking

󠄀 Corporate Trust

󠄀 Other (please comment)

_________________________________________

8. Does your institution systematically collect information

regarding 󠄀its 󠄀customers’ 󠄀business 󠄀activities?

󠄀 Yes

󠄀 No

9. Does your institution make an AML / CTF risk

assessment of your customers and their transactions?

󠄀 Yes

󠄀 No

10. Does your institution have a monitoring program for

unusual and potentially suspicious activity that covers

securities and funds services?

󠄀 Yes

󠄀 No

11. Does your institution have policies and procedures in

place to exclude or to block securities interests it suspects

may be ultimately owned by targets of sanctions?

󠄀 Yes

󠄀 No




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Comments and additional information:

____________________________________________________________________________________________________




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Part 3:

To be filled in by Customers holding third party assets commingled on an omnibus account.

Please note that accounts segregated to one legal owner may pool or commingle the

entitlements of many investors or owners when that legal owner is itself offering omnibus

accounts to its clients

1. Does your institution intermediate third party

securities or funds in the ordinary course of its

business?

󠄀 Yes

󠄀 No

2. Does your institution have policies reasonably

designed to ensure that it opens omnibus accounts only

for custodians that possess licenses to operate in their

countries of origin (or to validate the asset protection

arrangements of custodians in jurisdictions where

safekeeping is not regulated)?

󠄀 Yes

󠄀 No

3. Does your institution take steps that are reasonably

designed to determine that the ultimate ownership of

assets deposited in omnibus form has been identified by

yourself or by your own customers in compliance with

the ISSA FCC Principles?

󠄀 Yes

󠄀 No

4. Does your institution have a program in place to

identify and to record the ultimate ownership of any

assets deposited by your non-AML regulated clients?

󠄀 Yes

󠄀 No

󠄀 N/A

5. Does your institution have customers who are

persons and entities sanctioned by competent

authorities as well as against countries/regions subject

to comprehensive jurisdiction-based sanctions

administered by government/competent authorities of

G7 member countries identified in question 4 Part 2)

󠄀 Yes

󠄀 No

6. Does your institution deposit assets with CBL/CBF on

behalf of persons and entities sanctioned by competent

authorities as well as against countries/regions subject

to comprehensive jurisdiction-based sanctions

administered by government/competent authorities of

G7 member countries identified in question 4 Part 2)

If so, are those assets blocked?

󠄀 Yes

󠄀 No

󠄀 Yes

󠄀 No

7. Does your institution have policies and procedures in

place to exclude and to block, or to ensure that your

customers can block, securities interests deposited

with CBL/CBF that are ultimately owned by persons and

entities sanctioned by competent authorities as well as

against countries/regions subject to comprehensive

jurisdiction-based sanctions administered by

government/competent authorities of G7 member

countries?

󠄀 Yes

󠄀 No




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8. Does your institution have policies and procedure in

place to notify CBL/CBF of securities interests sub-

deposited by persons and/or entities sanctioned by

competent authorities as well as against

countries/regions subject to comprehensive

jurisdiction-based sanctions administered by

government/competent authorities of G7 member

countries?

󠄀 Yes

󠄀 No

9. Does your institution have policies to ensure that its

customers will not conduct transactions with or on

behalf of shell banks through any of accounts with or

operated by CBL/CBF?

󠄀 Yes

󠄀 No

10. Please identify the types of clients that your

institution services from its account(s) at CBL/CBF in

which assets of more than one third party are

commingled (such as omnibus accounts).

Please check all that apply.

󠄀 Broker dealers

󠄀 Investment banks

󠄀 Custodians

󠄀 CSDs

󠄀 Retail / Savings banks

󠄀 Non-bank asset managers

󠄀 Central banks

󠄀 Sovereign wealth funds

󠄀 Supra-nationals

󠄀 Pension / Insurance funds

󠄀 Mutual funds

󠄀 Corporates

󠄀 Private clients (High net worth)

󠄀 Private Clients (Retail)

󠄀 Offshore companies / SPVs

󠄀 Others (please comment):

_______________________________

11. Where are your institution’s 󠄀clients located?

Please comment on any significant sources of cross-

border business that exceed 25% of the assets

deposited with CBL/CBF.

List of countries:

_________________________________

󠄀 Domestic clients only

󠄀 Domestic and Cross Border clients

󠄀 Cross Border Clients only




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12. Will your institution deposit assets with CBL/CBF on

behalf of clients resident in any of the following?

󠄀 a. Countries designated by FATF or

its regional affiliates as having

strategic AML and CTF

deficiencies

󠄀 b. Countries that are the target of

UN sanctions or sanctions

potentially affecting the Custodian

or its sub-custodians.

If so, are those assets blocked?

󠄀 Yes

󠄀 No

Please describe the process for

ensuring Clearstream is not

instructed to process transactions

for any clients to which b applies:

_________________________________

13. Please identify the products that your institution

supports with the omnibus account(s) held with

CBL/CBF:

󠄀 Securities services / Custody

󠄀 Securities lending / collateral

management

󠄀 Fund administration / Distribution

󠄀 Retail banking

󠄀 Wealth management

󠄀 Investment banking

󠄀 Prime brokerage

󠄀 Investment / fund management

󠄀 Corporate banking

󠄀 Corporate trust

󠄀 Other (please specify):

_________________________________




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14. Does your institution have a process to identify the

following types of security before they are deposited

with CBL/CBF?

󠄀 No

󠄀 Yes

If Yes, which types of security:

󠄀 Low priced equities (with a

market value of less than USD 1)

󠄀 Private Placements

󠄀 Alternative funds and other

closed end collective investment

schemes

Questionnaire completed by:

First name: _____________________________________________________________________________

Last name: ______________________________________________________________________________

Job role at the institution detailed above: _________________________________________________

Email address: __________________________________________________________________________

Telephone: ______________________________________________________________________________

The undersigned, based on his/her best knowledge and belief, certifies the above referenced

questions were answered considering the existing internal controls of the subject financial

institutions, and further present an accurate representation of the existing state of the

institution's anti-money laundering and anti-terrorist financing controls and financial

services activities.

Authorised signature(s):

Date: ___________________________________________________________________________________

Completed Due Diligence Questionnaire may be sent via email to your Relationship

Manager

For internal use only:

Form validated by (Name of RM):

Date: